The latest SuperRatings analysis has revealed that the gap in fees between not-for-profit and retail master trust MySuper products is increasingly diminishing.
SuperRatings analysed the fees and investment options listed in the public disclosure statements of over 65 MySuper products.
The analysis revealed that on an average $50,000 account balance, average fees for retail master trusts each year are now $490, only $25 higher than the not-for-profit average of $465.
SuperRatings stated the introduction of numerous low-cost products helped the average MySuper fee to fall 23 per cent to $469 on a $50,000 balance, compared to the average $608 fee recorded at June 2012.
SuperRatings head of consulting Adam Gee said this reduction in fees has mostly been driven by the increasing competitiveness of the retail master trust sector.
The lowest cost MySuper product for a $50,000 balance was ANZ Smart Choice Super with its fee at $300.
This was followed by First State Super's MySuper Life Cycle at $332 and EISS MySuper at $335.
Mr Gee said while these cost reductions are a positive outcome for members, the focus needs to remain on the overall net benefit members receive – the combined impact of investment performance and fees.
“Members face greater risks if the fund’s investments are not meeting their objectives over the longer term, which could quickly balance out any perceived savings in fees,” said Mr Gee.
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